Fritz Joussen, Tui's chief executive, said that while British households continue to spend around £1,000 on their overseas jaunts, poor exchange rates are forcing many to seek out cheaper destinations.

He said: 'In reality, if the vacation to some of the destinations for £1,000 is not possible any more, then the destinations will change.'

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The group has set up a 'Brexit Steering Committee' and said it was putting in place 'contingency' plans depending on how the situation develops.

In currency markets, sterling is currently up 0.29 per cent to $1.3354 against the US dollar and up 0.17 per cent to €1.1367 against the euro.

In the last year, Tui's annual pre-tax earnings increase by 12 per cent to €1.1billion, while turnover rose 11.7 per cent to €18.5billion on a constant currency basis.

Over the next year, the company expects to see its earnings rise a further 10 per cent.

The company, which is the world's biggest holiday group, saw strong sales across Europe and further afield in countries like Thailand, with bookings to Turkey and North Africa also on the up.

Demand for cruises in the Caribbean remained 'subdued' following a string of hurricanes in the area.

The group's airlines have faced a number of difficulties this year. Multiple flight crews at its Tuifly airline called in sick during an industrial dispute leading to flight cancellations, while the collapse of Air Berlin required the group to renegotiate crucial flight agreements.

But, the group has not seen any drop off in UK demand and is forecasting another strong year ahead for bookings, thanks in part to the collapse of Monarch airline earlier this year.

Boost: In the last year, Tui's annual pre-tax earnings increase by 12 per cent to €1.1billion

Subdued: The group said sales of its cruises to the Caribbean remained 'subdued'

Tui's share price is at a record high and currently up 0.43 per cent or 6p to 1,415p.

Helal Miah, an investment research analyst at The Share Centre, said: 'The group have overcome some major obstacles such as terrorism, political uncertainty and pressures on consumer's pockets.

'But their geographical diversity, an improving Eurozone economy, expanded capacity and group rationalisation programmes continue to lead us to believe in the management.

'We continue with our Buy recommendation for investors seeking a balanced return and willing to accept a medium level of risk.'

David Madden, an analyst at CMC Markets, said: 'The share price of the company has been in a strong upward trend since June 2016, and today it hit an all-time high, and it is likely the bullish sentiment will continue.'